Tokenizing real estate: Making it easier to invest and access liquidity

Real estate investment has always been an attractive asset class for investors. However, with the emergence of blockchain technology, it has become even more accessible. Tokenisation is the process of creating digital tokens that represent ownership of physical assets such as real estate. By tokenising real estate, investors can unlock liquidity and access previously inaccessible investment opportunities. Windfall, a decentralised blockchain platform that enables the buying, selling, and managing of digital and physical assets, is at the forefront of this new era of real estate investment.

Tokenisation offers a range of benefits to both investors and property owners. First and foremost, it allows for fractional real estate ownership, meaning that investors can buy a portion of a property instead of the entire thing. This opens up investment opportunities to a broader range of people who may need more capital to invest in a property outright. In fact, according to a report by PMI, the global real estate tokenisation market is estimated to grow with a significant CAGR of 17.57 per cent during the forecast period of 2022-2027.

Tokenisation offers greater liquidity, as tokens can be bought and sold on secondary markets. This allows investors to exit their investments quickly and easily, as opposed to traditional real estate investments, which can be illiquid and tie up capital for extended periods.

In addition to greater liquidity, tokenisation also offers greater transparency and security. For example, blockchain technology provides an immutable ledger that records all transactions, making it difficult for fraudulent activities to take place. This added transparency and security is a significant benefit for investors seeking a more secure and trustworthy investment.

One of the biggest challenges facing traditional real estate investment is the high barriers to entry. Tokenisation offers a way to break down these barriers by lowering the minimum investment requirements. This allows for greater participation in real estate investment from individuals who may have yet to access these opportunities.